Behind my new unconventional refund policies
I never expected to completely change my refund policies this year.
Especially not right after I got a new website and branding.
However, that’s exactly what happened.
I changed my refund policies from the two typical online business standards:
30-day money back guarantee if you're not happy
"show you've done the work" to be eligible to ask for a refund
I've had these policies in place for years.
My approach towards legal contracts -- like refund policies and terms & conditions -- is to start with a robust standard contract and add protections as situations crop up that I never wanted to have happen again.
For example:
A client asks for a program refund because they've decided they're too scared to send cold emails, despite buying a program to do just that…
… and they never actually send a cold email.
Do I give a refund?
Or not?
I had that situation come up, so I added language in the refund policy to protect myself.
If you think about it, my refund policies were focused solely on protecting me.
Which is great, until you realize there's another party in this relationship:
You, the client.
Something had to change.
Before we get into WHY change needed to happen and what sparked that change, let’s check out my new refund policies.
There are 3 types of refunds in my new policy:
1) Satisfaction refund
This is a straight-forward refund.
If you don't feel more confident sending cold sales emails after you've purchased the Cold Email Toolkit, you can request a refund.
At any time after your purchase. No 30-day time limit.
2) Guarantee refund
A guarantee refund where, if you follow the system within the program and you get results, you can ask for a refund.
That's how much I know my systems work inside the Find Your Lead workshop, Master Sales Calls, and Cold Email Cash Flow Method.
There are some caveats. Like for the Find Your Lead workshop, if you find and sign 3 new clients using this system, you’re eligible for a full refund.
Or for Cold Email Cash Flow Method: send 30 emails within 60 days of purchasing and follow the method exactly, and if you don't make your investment back, you can request a refund.
And you'll also get $100 for your time.
Notice how this policy is reward-based with an element of game play.
3) No refund
Inside Growth Multiplier Mentorship, you are the guarantee.
Like an Olympic coach cannot claim her client will get a gold medal from working with her…
… I can’t claim you’ll get a specific result.
I can’t even claim responsibility for your results.
Nor would it be right. (Lots more on this topic to come soon.)
Only you are responsible for your actions.
Inside this mentorship, I show you a real-time look at the behind-the-scenes of my business and my proprietary system for client generation.
Because of that -- and that you’re committing to work with me for six months --
I need you to show up in the fierce way that I am showing up for you.
What are my intentions behind these refund policies?
To nudge you to actually do the work.
You don't get results without taking action.
Swiping your credit card to purchase a program that promises to relieve your pain ONLY works...
…if you do the work.
Swiping your card isn't the work.
Taking the action is.
Sometimes you need extra motivation.
Hence these refund policies with an element of game play and reward.
Where did these refund policies come from?
They came from three places:
The book Nudge
Article by Tara Gentile of We Work
Humans are good deep down
Let’s dive in a little further.
1) On maternity leave, I read Nudge: Improving Decisions about Health, Wealth, and Happiness by Cass R. Sunstein and Richard Thaler.
In one section, they discuss the importance of stripping away the dense legal language inside terms and conditions, contracts, and other similar documents into regular, easy-to-read language.
That got me thinking.
While I love legal language and the nuances of it -- after all, I worked 8+ yrs in a law office -- I don't like the density of it.
Then I read this thought-provoking article by Tara Gentile of We Work.
In it, Tara talks about where refund policies came from and encourages a rethinking towards them.
From Tara:
“The way I see it, any marketing strategy that casts a wide net, where purchases happen fast with the pressure of urgency, requires a return policy that skews heavily toward offering refunds, even if they’re not always justified.
A meticulous, slow, and personal marketing (or sales) strategy can skew toward the more cautious approach.
While most online service businesses would do well with a stricter policy, online course and digital product businesses—especially those supported by affiliate marketing, deadline funnels, or launches, should skew toward a lenient one.
However, that is rarely the case in reality.”
This question from business ethicist Chris MacDonald, quoted in Tara’s article, rocked me:
“Is the relationship between buyer and seller appropriately thought of as an adversarial one or a cooperative one? Ethically, is it right for a company to think of customers as friends or foes?”
A business's refund policy is indicative of how it views its clients.
I see you, a client, as my partner.
Why would I have a refund policy where I set you up as my foe?
My business is moving away from deadline funnels, launches, and time-pressured sales.
Therefore, my policies needed to change.
James Clear cemented this idea:
"Every transaction is paid for at least three times. First, with the money you pay. Second, with the time you spend. Third, with the reputation you create through your behavior.
Being pleasant, reliable, and easy to work with might cost you a little more time. Perhaps even a bit of extra money. But the long-term returns from a great reputation usually outweigh the cost of a single transaction.
Most of the value in life and in business arises out of good relationships.” [emphasis added]
Finally, that seed to reinvent my refund policies sprung into life because of this quote from Good Inside by Dr. Becky Kennedy:
“I truly do believe we are all good inside.”
We all have the small, quiet inner voice that directs our steps.
And we’re hardwired to connect with other humans.
I'm betting on that desire for connection -- to be a part of the community and not ostracize yourself -- and that you'll do the respectful thing by not taking advantage of these policies.
TBH, I feel nervous about putting these policies in place.
I don't know how they'll perform.
Like 99% of what I do, it’s an experiment.
I don't want my programs to sit on your virtual shelf and temporarily ease your pain.
Multiple studies have shown that if you take no action, you never see results.
I want you to see results.
I want to brag about your results far and wide to everyone.
I want to shout your name and your awesomeness and bravery for doing big, scary things wayyyy outside your comfort zone.
You’re amazing,
Laura
Whenever you’re ready, here are 3 ways I can help you:
1) Send successful cold sales emails to get new 1-1 clients
Inside the Cold Email Cash Flow Method is my entire cold sales email system.
If you’ve tried a few cold emails and want to get better results, this might be for you. Enroll here.
2) Find your lead to cold email
Discover how to target the right recipient to set your cold email up for success here.
3) Join Growth Multiplier Mentorship and be a case study
I'm putting together a group where I'm going to work with a handful of private clients with their cold & pitch emails.
If you’d like to work 1-1 with me… click here to send me an email and we'll have a quick convo to see if this is right for you.